Wind down plans
Wind down planning is an important part of wider business continuity planning. It’s vital for the protection of investors/lenders. An important set of instructions that can be followed so there will be a smooth transition of your operations for the outstanding duration of investments.
Scenarios that could lead to a wind down plan being triggered include:
· You experience significant financial losses with no prospect of a timely recovery;
· You are unable to raise sufficient capital to continue the business;
· You lose a critical system provider with no prospect of timely recovery;
· You are unable to generate any new business to generate sufficient future income;
· Board or stakeholder decision to wind down business
· Loss of regulatory permissions.
Outsource versus keeping a small core team
Whether you wind down the investment business in house or outsource can depend on a number of factors and an assessment of both your financial and non-financial resources.
Whether you are you able to keep your regulatory permissions is obviously a core question. But also there can be a phased approach of migrating over to an external provider.
Regulated activity ShareIn can help with
ShareIn have a number of years experience of providing the following services under both our regulatory permissions but also for directly authorised entities:
· Holding Client Money for investors/issuers
· Making arrangements with a view to investors acquiring investments.
· Performing due diligence on the investments and reviewing financial promotional materials for investors based on the firm’s understanding of the investment risks and features.
· Arranging for investor subscriptions and distributions to be held in accordance with regulatory requirements.
· ShareIn is an ISA manager and has been since 2014. We can ensure investments can remain within an ISA wrapper for the duration of the investment. ShareIn, opens and maintain ISA accounts for investors.
· Ensuring that arrangements are made for the repayment of sums and returns under the loan notes/bonds are made back to investors.
Operational Continuity
We have proprietary investment and payment platforms that our customers use to run their websites. We can (and do) migrate websites from other systems onto our platform as well as being able to provide the regulatory cover needed to continue operations during a wind down period.
If you need a provider that can continue to run a platform for your investors. ShareIn has an in house team of experts that run many direct investment platforms in the UK. We’re familiar with migrating platforms onto our systems and would work with you to create a migration plan from your website onto our white label investment platform technology.
This is a good option for most business that want to tackle current internal costs and ensure that their platform is maintained and if you would like to discuss that please contact us.
Customer service
ShareIn have a customer success team that can support you through investor issue resolution. Our platform is self service for investors so they can manage cash returns directly. We can work with you on a customer support schedule that’s appropriate for your business and user base.
Working with an administrator
If your business goes into administration, we could work with the Administrator and take over operational activity to ensure your customers are dealt with appropriately..
Avoiding a wind down by a radical cost reduction programme
If your need to dramatically reduce your cost base outsourcing your activity may enable you to prevent a wind down scenario kicking in.
We could be a technical and customer support solution for your business. We offer flexibility on this front and can tailor a solution to match your desired service continuity and your budget.
Please feel free to get in touch to discuss how we can address your requirements.